French gambling titan intends to acquireKindred for a staggering €2.45 billion.
Giant French gambling company FDJ proposes a €2.45 billion deal for Kindred:
La Francaise des Jeux (FDJ), a well-known gambling corporation from France, has put forth an offer worth approximately €2.45 billion to acquire online gambling company Kindred. If the deal goes through, FDJ would position itself as the second-largest operator in the European gambling sector, aiming to become a leading gaming powerhouse across Europe.
Kindred Promotes Shareholders to Accept Offer
In a press release dated January 22 [English link provided], Kindred, a Maltese online casino operator, acknowledged receiving an offer from FDJ for a takeover. The total sum of the offer stands at around 27,951 million SEK (approximately €2.45 billion). For each share, shareholders will receive an offer of 130 SEK (approx. €11.41).
The offer from FDJ represents a 24.4% increase in value compared to the closing share price on January 19, the final trading day before the takeover proposal was made. In light of this, Kindred's board of directors unanimously advises shareholders to accept the offer.
The acceptance period for this offer commences on February 20 and concludes on November 19. According to reporting by iGB [English link provided], five major shareholders—comprising 27.9% of the total shares—have publicly pledged their support for the offer. These shareholders include:
- Corvex Management
- Premier Investissement
- Eminence Capital
- Veralda Investment
- Nordea
Kindred Has Experienced Difficulties
Over the past few years, Kindred has faced several hurdles. In June 2023, its subsidiary, Trannel, was forbidden from offering online gambling in Norway due to legal disputes spanning years. As a result, Kindred was forced to leave the Norwegian market and pay the associated legal fees.
Just a few months following this, in November 2023, Kindred announced that it would be withdrawing from North America and terminating 300 employees. At the time, rumors circulated suggesting the likelihood of a company sale. If approved, FDJ's offer might bring this plan to fruition in the near future.
Offer Subject to Conditions
The takeover offer from FDJ is contingent on fulfilling various requisites. At least 90% of Kindred's shareholders must accept the offer, while all necessary approvals must be acquired. Additionally, no events should transpire that could negatively impact Kindred's financial stability. Lastly, both parties must refrain from releasing incomplete or misleading information regarding the takeover.
FDJ Seeks Expansion through Acquisition
For FDJ, this acquisition offers the opportunity to expand. Relying on Stéphane Pallez, CEO and chairman of FDJ, Kindred boasts an appealing growth profile and is a prominent, leading brand.
"In harmony with our strategy, it will provide the group with a diversified and well-balanced portfolio based on multiple pillars." – Stéphane Pallez, CEO and chairman, FDJ, iGaming Business
By acquiring Kindred, FDJ believes that the two companies will complement each other impeccably due to their shared history, strategic fortitude, and shared values. This acquisition would strengthen FDJ's strategic position and bring added value to shareholders and stakeholders.
It remains to be seen if Kindred's shareholders approve the offer in the upcoming months.
The acquisition proposal by FDJ has caught the attention of online casino enthusiasts in Germany, as the potential takeover of Kindred could impact the competitive landscape of the online gambling industry in Europe.
In the event of the successful completion of the offer, FDJ's online casinos might expand to include popular German online casinos that are currently part of Kindred's portfolio, such as Unibet and 32Red.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage